Iowans Challenge Bank of America and Wells Fargo CRA Ratings

***FOR IMMEDIATE RELEASE***

Contact:
Don Carlson, Illinois People’s Action Jack Porter, Illinois People’s Action
Cell: 309-826-9627 Phone: 309-829-2144

Monica Trevino, National People’s Action Chris Neubert, Iowa CCI
Cell: 312-286-4430 Phone: 515-255-0800

Financial agencies and federal lawmakers are moving to revamp a 1970s-era law designed to reduce racial discrimination in lending and bolster loans to low- and middle-income communities.

Financial agencies have held a series of summer field hearings to look at ways of modernizing the law, which many Republicans claim contributed to the housing crisis and Democrats say should be expanded to better accomplish its mission.
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National People’s Action have a fascinating report out today about America’s big four banks — Citi, JPM, Wells Fargo, and Bank of America — and how they all seem to be able to easily obtain “outstanding” ratings on their CRA exams.

New Report Shows How Community Reinvestment Act Failed To Stop Predatory Practices by Wells Fargo, JPMorgan Chase, CITI and Bank of America

Major lenders have been subverting their legal responsibilities to meet the credit needs of their communities.

New Report Shows How Wells Fargo, JPMorgan Chase, Citibank and Bank of America Got Around the Community Reinvestment Act to Make Bad Loans

Major lenders have been subverting their legal responsibilities to meet the credit needs of their communities.

Federal regulators who oversee the relationships between America's banks and the consumers they are supposed to serve will hold a rulemaking hearing in Chicago Thursday. If the past is an indicator, the hearing will be long, complex, ignored by the news media -- and very important.

At issue is how to make the federal Community Reinvestment Act more relevant and effective in 2010 and for the years ahead. CRA is designed to hold financial institutions accountable for serving local consumer and business credit needs in the communities they serve and profit from.

Last week the bell rang to start Round Two in American's fight to keep banks honest/ for banks to clean up their mess. Sponsored by the Federal Reserve, the Federal Deposit Insurance Corp. and the Comptroller of the Currency July 19th was the first of a series of four public hearings on how to improve our community investment regulations. National People’s Action members from around the region flew in to sound the call for critical community investment.

WASHINGTON—The head of a nonprofit group that is working to rebuild Buffalo’s older housing told federal officials Monday that they should look to New York to see how to improve a federal law forcing lenders to invest in low-income communities.

Aaron Bartley, who directs People United for Sustainable Housing, said at a hearing held by three agencies that Green Jobs/Green NY can be a national model. The state program creates a revolving loan pool that low-and moderate-income homeowners can access to improve the energy efficiency of their homes.

After a classic David and Goliath showdown between Wall Street might and a small band of reformers, a 2,000 page Wall Street reform bill passed the U.S. Senate Thursday afternoon 60-39. The bill is now final and is headed to the President Obama’s desk for signature.